Mumbai, April 14: As several cities add metro rail to theirpublic transport facilities or extend their existing networks, a JLL reportsaid that land value within 500 metre of upcoming metro corridors is expectedto increase by 10-15 per cent, according to a JLL report.
Noting that India was introduced to the metro rail as analternative mode of transport three decades, the report said: "Since then,the advantages of the metro rail system have increased many-folds. Primarily ithas been the enhanced connectivity to the suburbs of the city, thus enablingdistribution of the city population to a larger extent of land resulting tocongestion reduction in the city."
Covering a total of 760.62 km across India with another578.34 km under construction, the past two decades has seen a tremendous growthof the metro rail. Cities including Kochi, Chennai, Bengaluru, Nagpur andNashik have seen significant expansion of new metro lines, which washighlighted by the Finance Minister in the Union Budget hearing in January2021.
Further, two new technologies including MetroLite andMetroNeoare are being planned to provide affordable connectivity options intier II cities and peripheral parts of tier I cities.
"The real estate market has seen a steady growth alongthe metro corridors, owing to increase in developments alongside the routes.Furthermore, on an average, the land value within 500 metre of metro corridorshas increased by 15-20 per cent, especially in residential and commercialareas," said A. Shankar, Head - Strategic Consulting and ValuationAdvisory, India, JLL.
He further said that it has been observed that appreciationin land value has been on a rise after the metro operation and increase by 2-5per cent annually over other locations, compared to the construction andplanning phase.
The deployment of metro corridor directly impacts the realestate sector as it increases the land value, land use change and densificationalongside the metro corridor. Mass transit systems such as metros and monorailssignificantly contribute towards solving traffic problems, the report said.
Thus, projects which are planned around the vicinity witnessan increased urban real estate value, since consumers are willing to pay morefor convenience, it said.
Residential property in the South Delhi area of the nationalcapital appreciated by 15-20 per cent in last 5-6 years. The land value of themetro on the Nirman Vihar stretch which became operational in 2010, wasobserved substantial increase from Rs 1.50 lakh per square yard to currentprices in the range of Rs 2 lakh-2.5 lakh per square yard. Similar priceappreciation has been witnessed in other cities.
Metro rail network of 702 km is already operational acrossthe country, and another 1,600 km of metro rail network is under constructionin 27 cities.